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1. Company Snapshot

1.a. Company Description

Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and British Virgin Islands.The company provides savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; and certificates of deposit.It also offers commercial and industrial, commercial multi-family, commercial real estate, and residential mortgage loans; consumer loans, including personal loans, credit cards, automobile loans, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases.


In addition, the company provides investment banking, auto and equipment leasing and financing, broker-dealer, and insurance services; debit cards; and online banking services.As of December 31, 2021, it operated 169 branches; and 616 ATMs in Puerto Rico, 23 ATMs in the Virgin Islands, and 91 ATMs in the United States Mainland.Popular, Inc.


was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.

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1.b. Last Insights on BPOP

Popular, Inc.'s recent performance was driven by improved deposit growth, asset quality, and earnings momentum. The company's organic deposit growth, higher net interest margin, and effective asset repricing have driven revenue and profit increases. A 7.1% dividend hike and expanded buybacks also contributed to the positive trend. Additionally, loan growth and share repurchases are expected to drive Q3 2025 EPS. (Source: I Was Wrong About Popular (Upgrade), 2025-10-20)

1.c. Company Highlights

2. Popular, Inc. Delivers Strong Q3 2025 Results

Popular, Inc. reported net income of $211 million and EPS of $3.15 for the third quarter of 2025, an increase of $1 million and $0.06 per share, respectively. The results were driven by higher revenues, expanding net interest margin, strong loan growth, and stable customer deposit balances. Net interest income increased by $15 million to $647 million, driven by higher average deposit balances, fixed rate asset repricing, and deposit pricing discipline. The actual EPS of $3.15 beat analyst estimates of $3.04, indicating a positive surprise.

Publication Date: Oct -25

📋 Highlights
  • Net Income & EPS Growth: Net income rose to $211 million (+$1M YoY), with EPS at $3.15 (+$0.06 YoY), driven by revenue growth and loan expansion.
  • Net Interest Income & Margin Expansion: Net interest income hit $647M (+$15M), with a 2-basis-point GAAP NIM expansion and 5-basis-point tax-equivalent growth.
  • Loan Growth Momentum: Quarterly loan growth of $502M accelerated expectations to 4–5% annualized, supported by contributions from both banks.
  • Credit Metrics Stability: NPL-to-loan ratio spiked to 1.3% due to two commercial loans, but excluding these, credit metrics remained stable with a $786M allowance for losses.
  • Capital Strength & Tax Efficiency: CET1 ratio held at 15.8%, tangible book value rose to $79.12/share (+$3.71), and effective tax rate dropped to 14.5% on higher exempt income.

Loan Growth and Credit Metrics

Loan growth was strong at $502 million for the quarter, with both banks contributing to the increase. The company's credit metrics were impacted by two large commercial loans, but excluding these, credit metrics remained stable. The ratio of NPLs to total loans held in portfolio increased to 1.3% compared to 82 basis points in the prior quarter, due to two unrelated commercial exposures. The company feels comfortable with its credit position and outlook for the portfolio, citing opportunities for repricing in the auto loan portfolio given the current rate environment.

Expense Management and Guidance

Total operating expenses were $495 million, an increase of $3 million when compared to last quarter, driven by a $13 million noncash goodwill impairment and higher personnel costs. The company has made efforts to control costs and is focused on execution and excellence, expecting no significant increase in expenses in 2026. The company guides for an effective tax rate of 16-18% for 2025, which is seen as a clean number without discrete events.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) of approximately 1.29 times, and a Dividend Yield of 2.5%, Popular, Inc.'s valuation appears reasonable. Analysts estimate next year's revenue growth at 7.0%, indicating a positive outlook. The company's guidance on net interest income remains unchanged, and it expects margin expansion to continue, driven by fixed asset repricing, loan growth, and a favorable interest rate environment. The company's target ROTCE of 14% is expected to be achieved through improving net income performance and operating leverage.

Investment and Technology

The company plans to continue investing in initiatives, with potential for some step-up in costs, but also expects to gain efficiencies to offset these costs. The investment in technology is rational, allowing the company to compete not only in Puerto Rico but also with big players from the United States. A transformation mindset is being created in teams, and results are being seen, with over 80 projects ongoing.

3. NewsRoom

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Popular Named “Bank of the Year Puerto Rico 2025” by The Banker Magazine

Dec -04

Source: businesswire.com

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Why United Natural Foods Stock Is Popular Today

Dec -02

Source: fool.com

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CTW Launches Crayon Shinchan: My Sugoroku Great Strategy Video Game Based on Popular Crayon Shinchan Anime Franchise

Dec -02

Source: globenewswire.com

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Eli Lilly Trims Price of Popular Weight-Loss Drug on Its Site a Month After Trump Deal

Dec -01

Source: investopedia.com

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Eli Lilly Stock in Focus After Slashing Cost of Popular Drug

Dec -01

Source: schaeffersresearch.com

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Popular, Inc. $BPOP is Bayview Asset Management LLC’s 10th Largest Position

Dec -01

Source: defenseworld.net

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Is Popular Stock a Buy or Sell After a Director Dumps Shares Worth Nearly $3 Million?

Nov -29

Source: fool.com

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Prediction: This Stock Market Bubble Will Burst in 2026 and 3 Popular Stocks Will Crash (Hint: Not Artificial Intelligence)

Nov -29

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.70%)

6. Segments

Banco Popular De Puerto Rico

Expected Growth: 10%

Banco Popular de Puerto Rico's 10% growth is driven by a strong brand presence, diversified revenue streams, and a solid balance sheet. The bank's focus on digital transformation, expansion into new markets, and strategic partnerships also contribute to its growth. Additionally, a favorable economic environment in Puerto Rico, characterized by low unemployment and increasing tourism, supports the bank's growth momentum.

Popular United States

Expected Growth: 8%

Popular United States' 8% growth is driven by increasing demand for consumer loans, expansion of digital banking channels, and strategic acquisitions. Additionally, a strong brand presence, efficient cost management, and a favorable interest rate environment contribute to the company's growth momentum.

Corporate

Expected Growth: 6%

Popular, Inc.'s 6% corporate growth is driven by strategic expansion into digital banking, increasing demand for mortgage loans, and a strong presence in the Puerto Rican market. Additionally, the company's focus on cost reduction initiatives, investments in technology, and a solid capital position contribute to its growth momentum.

Eliminations

Expected Growth: 4%

Popular, Inc.'s 4% growth is driven by strategic acquisitions, expansion into new markets, and increased lending activities. Additionally, the company's focus on digital transformation, cost savings initiatives, and a favorable interest rate environment have contributed to its growth momentum.

7. Detailed Products

Banco Popular

A full-service bank offering personal and commercial banking services, including checking and savings accounts, credit cards, loans, and investment products.

Popular Securities

A brokerage firm offering investment products and services, including stocks, bonds, mutual funds, and retirement accounts.

Popular Insurance

An insurance company offering a range of insurance products, including auto, home, life, and health insurance.

E-Loan

An online lending platform offering personal loans, mortgages, and credit cards.

Popular Mortgage

A mortgage lender offering a range of mortgage products, including fixed-rate and adjustable-rate mortgages.

8. Popular, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Popular, Inc. is medium due to the presence of alternative banking services and financial institutions.

Bargaining Power Of Customers

The bargaining power of customers is high due to the availability of multiple banking options and the ease of switching between financial institutions.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's large scale of operations and its ability to negotiate favorable terms with suppliers.

Threat Of New Entrants

The threat of new entrants is medium due to the regulatory barriers and capital requirements that make it difficult for new banks to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple established banks and financial institutions competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.79%
Debt Cost 6.46%
Equity Weight 82.21%
Equity Cost 8.12%
WACC 7.82%
Leverage 21.63%

11. Quality Control: Popular, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Popular

A-Score: 6.9/10

Value: 6.3

Growth: 5.9

Quality: 7.0

Yield: 6.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
First Bank

A-Score: 6.9/10

Value: 6.5

Growth: 6.6

Quality: 8.0

Yield: 7.0

Momentum: 5.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Cathay Bank

A-Score: 6.6/10

Value: 6.3

Growth: 6.1

Quality: 7.4

Yield: 6.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Fulton Financial

A-Score: 6.5/10

Value: 6.1

Growth: 6.3

Quality: 6.0

Yield: 8.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Citizens Financial Group

A-Score: 6.5/10

Value: 5.8

Growth: 5.2

Quality: 6.4

Yield: 7.0

Momentum: 7.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Synovus

A-Score: 6.2/10

Value: 6.9

Growth: 5.4

Quality: 7.1

Yield: 6.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

116.29$

Current Price

116.29$

Potential

-0.00%

Expected Cash-Flows